Online masterclass “Good practice and approaches to Value for Money analysis”

Published on: 17.06.2021
Category: PPP News

Yesterday, on the 16th of June, an online masterclass from a renowned PPP specialist, Andres Rebollo, took place. Andres Rebollo is the author of the PPP Certification Guide, developed by international financial institutions and international development banks on a global level, with the support from APMG and the CEO of an International Education Center in Madrid (Spain) K-Infra.

Online masterclass “Good practice and approaches to Value for Money analysis” was dedicated to a critical analysis of how different countries around the world estimate Value for Money (VfM) and included general recommendations regarding the world’s best practices. More than 110 PPP experts from around the world have participated in the event.

Andres Rebollo has devoted particular attention to the diversity of approaches that practitioners in different countries take to evaluate and approve PPP projects, particularly concerning the qualitative and quantitative assessment of the Public Sector Comparator (PSC) and the evaluation of PSC alternatives costs and PPP.

 During the masterclass, the following essential elements of the VfM assessment were discussed: 

  • approaches to making quantitative adjustments to Public Sector Comparator, when assessing risks which belong to the public partner during traditional public procurement processes (and which are transferred to a private partner under the PPP model);
  • approaches to making quantitative adjustments to Public Sector Comparator, when ensuring “competitive neutrality” and correspondingly adding the tax effect to PSC, which simulates in the Comparator the tax regime, applicable to a private partner, or reduces the fiscal impact of PPPs to reduce tax consequences;
  • risks of missing the date of PSC update;
  • approaches to PPP project costs evaluation (as an alternative procurement option) and the importance of taking into account in such evaluations, the costs of project management and monitoring as well as PPP contract management, which are incurred by the public partner;
  • Approaches to choosing the rate of discount when calculating the net present value of the alternatives to PSC and PPP

 Andres Rebollo has shared his experience and recommendations on the use of the world’s best practices in conducting a Value for Money assessment and proposed several adjustments to the PPP Certification Guide.

You can learn more about the PPP Certification Guide at the link below:

https://ppp-certification.com/ppp-certification-guide/about-ppp-guide